European banks face rising multi-channel fraud in 2026

A survey of 200 European fraud leaders conducted by Finextra in association with NICE Actimize finds multi-channel fraud increasing in 2026 and banks expanding use of artificial intelligence while facing integration and control gaps.

The survey reports that traditional fraud types such as card fraud and account takeover continue to cause losses. Respondents identified newer vectors of concern, including AI-initiated payment flows and fraud linked to virtual assets. Participants said fraudsters are exploiting new technologies and payment rails, increasing the number of channels that institutions must monitor beyond legacy systems.

Respondents described deploying machine learning and AI analytics to detect anomalous behavior, apply real-time scoring, automate decisioning and reduce false positives. Banks view these tools as a way to scale coverage across established and emerging fraud types.

Survey participants identified several integration challenges. Banks reported difficulty connecting models to legacy systems, consolidating fragmented data sources, and meeting regulatory and explainability requirements. Many institutions also reported a shortage of staff able to validate and tune AI models.

The findings show differences across European markets. Larger institutions and banks in countries with higher investment in fraud technology reported more mature toolsets and centralized fraud teams. Smaller banks and institutions in lower-funded markets reported heavier reliance on manual processes and third-party services, which respondents said affects response speed and the ability to update controls as fraud patterns change.

On defensive capabilities, respondents expressed limited confidence in current controls for the coming years. Institutions reported allocating budget to AI, enhanced monitoring, analytics projects, data-cleaning work to improve model inputs, and hiring or training fraud specialists with AI and data skills for 2026.

Respondents listed roadblocks to modernization that include legacy technology stacks that resist fast integration, insufficient internal data governance, and a shortage of trained staff. The survey states these constraints are slowing efforts to deploy unified defenses across payments, online banking and emerging crypto-related channels.

Finextra will host a webinar with NICE Actimize to discuss the survey results. Panelists include Chris Ainsley, head of fraud risk management at Santander UK; Joe Bristow, product director and fraud subject-matter expert at NICE Actimize; and Sharon Kimathi, researcher at Finextra, who will moderate. The session will cover which controls are proving effective, practical steps for integrating AI tools and how fraud, risk and compliance teams are prioritizing investments.

The survey notes that banks need to extend detection and prevention beyond traditional card and account-monitoring systems and to improve controls, data practices and skills to address fraud that uses new technologies and payment methods.